USMX Animated PDFs

ii 2 0 1 7 A N N U A L R E P O R T USMX-ILA MASTER CONTRACT In early 2017, USMX met with the ILA to begin the process of negotiating a long-term extension to the 2012-2018 Master Contract. We jointly believe that starting discussions early, with the target of completing negotiations well before the contract expiration date of September 30, 2018, would provide our USMX members, the ILA rank-and-file and the shipper community, the stability afforded by a long-term agreement. Long-lasting labor peace is the most responsible way for both management and labor to protect and promote the growth and expansion of freight through our ports long into the future. Our excellent working relationship with the ILA leadership continued, as we worked closely throughout 2017 to resolve many of the open issues well before our first formal bargaining session in December of 2017. We will continue our cooperative negotiations efforts for an early settlement as we move into 2018. CARRIER ALLIANCES Our Carrier members spent the majority of 2017 dealing with various carrier company consolidations and realignments of the previous four major alliances, culminating in the formation of three major alliances by the end of the year. The carrier efforts were seamless to the operations of the ports, as we saw an unusually smooth year throughout the port range. TONNAGE We continued to see significant tonnage growth throughout the majority of our USMX ports in 2017, with especially strong growth in the South Atlantic and Gulf Coast ports. New York and New Jersey, our largest Member port, also saw above-market growth. INFRASTRUCTURE IMPROVEMENT With the evolution of new and better maritime vessels, equipment and technology, our Member ports and terminals made significant investments in infrastructure improvements within and around our East and Gulf Coast ports in 2017. Most significantly, the Port of New York and New Jersey completed the raising of the Bayonne Bridge, allowing a new generation of 10,000- to 14,000-TEU container ships to cascade into the USEC and Gulf trades. Ultimately, these investments will benefit our carrier members as they move cargo in and out of our ports in these new vessels, using systems, facilities and a labor force that can accommodate them in the most efficient and productive manner possible. IN CONCLUSION Though 2017 showed marked improvement in the national and world economies and much of the maritime industry over previous years, we must remain vigilant in 2018 to ensure labor peace and a continuation of the productive and cooperative spirit that USMX and the ILA have worked for over the years, to the benefit of our members. David F. Adam Chairman & CEO CHAIRMAN & CEO'S MESSAGE United States Mari me Alliance, Ltd. United States Maritime Alliance, Ltd.

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